Posted by Tom – IN on August 07, 2001 at 01:35:54:
Without telling what is the right way to go, I can tell you that this is the wrong way to go. What happens when she just spends your money instead of paying the house payment. You MUST get the deed and the payment book out of her hot little hands.
Is this a first mortgage only? Have you done a title search? How about offering her $500 or $1000 to sell you the house and move out, contingent on you getting permission from the bank to start working on the back payments. Find out from the bank what they’ll accept before you take the house.
I am extremely green but I think I have a deal here. I need help in determining what I should do. A neighbor two doors down is in pre-foreclosure. She says that she is about $3,000 behind in payments. Her payments are around $800/month. I figure she is probably 4 months behind. I told her that I could probably get her what she needs (to get out from under her house debt) but not necessarily what she wants. She was just laid off from her job. She said that the remaining debt on the house is $72k, the market value on her home is between $110k - $115k. It does need some repair, maybe 5k to 10k to bring it up to retail. My thoughts are cfd for $73k to give her some money to find another place and take over the payments. Place an ad for a bad credit, recent bk, etc. at $105k 10% owner financed note with 5% down and first month’s payment with a two year balloon. I would take some of the 5% to bring the payments current. Are there any other professionals out there that can help. I asked her if there were any liens on the property besides the mortgage and she said no. What do you think?